By Siddharth Cavale
NEW YORK (Reuters) – ONE, a fintech company backed by Walmart Inc, is offering 5% interest on savings accounts up to $100,000 from Wednesday, a source familiar with the company said. as the battle for consumer deposits intensifies.
The rate is more than 12 times the national average of 0.4%, the source said, citing data from the Federal Deposit Insurance Corporation.
Apple Inc began offering 4.15% on its Apple Card savings accounts in April in partnership with Goldman Sachs Inc. Step, a fintech app aimed at young customers, offered 5% in May.
To be eligible, ONE accounts must receive a direct deposit of at least $500 in the previous month, or have a total daily balance of $5,000, or automatically save a portion of the customer’s paycheck.
All other savings balances will continue to earn an annual percentage return of 1.00%.
US banks are trying to lure customers by offering bonuses for new accounts or regular deposits after Silicon Valley Bank and Signature Bank collapsed in March following an exodus of depositors seeking higher returns .
Coastal Community Bank holds ONE’s charter banking services, which include physical and virtual debit cards. ONE is majority owned by Walmart but operates independently.
(Reporting by Siddharth Cavale in New York; Editing by Richard Chang)